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Buy now, pay later

Customers pay over time. You get paid now.

Add buy now, pay later to your checkout and let shoppers split purchases into smaller payments. You're paid upfront, and the provider usually takes on the repayment risk.

Add BNPL to my checkout Chat on WhatsApp

Pay in 4 · Monthly financing · Online & in-store · Works alongside your card processing

How a BNPL order works

Illustrative pay-in-4 example.

Order total$600.00

Customer pays

$150Today
$1502 weeks
$1504 weeks
$1506 weeks
Why retailers offer it

Bigger baskets, fewer abandoned carts.

Splitting the cost makes larger purchases feel manageable, so more shoppers finish checking out.

Higher order values

Shoppers who can split the cost tend to spend more per order and upgrade to the better option.

More completed checkouts

A flexible way to pay at the last step reduces cart abandonment, especially on higher-ticket items.

Paid upfront, risk shifted

You receive the full amount, less the provider's fee. If a shopper misses a payment, it's the provider's problem, not yours.

New customers

Reach shoppers who don't have, or don't want to use, a credit card.

Online and in-store

Offer it on your website, and at the counter through a POS integration or QR code.

Fits your checkout

BNPL sits next to cards, wallets and eCheck in one checkout, so customers choose how to pay.

Online payments →
How it works

Three steps at checkout.

Step 1

Shopper picks BNPL

They choose "pay later" at checkout and enter a few details. Most pay-in-4 plans use a soft credit check.

Step 2

Instant decision

The provider approves in seconds and shows the payment schedule before the shopper confirms.

Step 3

You're paid

You ship the order and receive the full amount, less the provider's fee, usually within a few days.

Providers we can help with

Choose the plan that fits your products.

AffirmKlarnaAfterpayPayPal Pay LaterSezzleZip

Short pay-in-4 plans suit everyday and fashion purchases. Longer monthly financing suits electronics, furniture, fitness and travel.

Good to know

Is BNPL right for you?

  • Fees are higher than cards. Often a few percent per order plus a small fixed fee, so it works best on higher-value orders.
  • Minimums and maximums apply. Each provider sets order limits.
  • Not every industry qualifies. Many providers decline high-risk businesses.
  • Refunds go through the provider, so the shopper's remaining payments are canceled correctly.

Declined by BNPL providers?

High-risk businesses can still offer flexible payments. High-risk accounts →

Recurring billing Payment plans via eCheck Invoices & payment links Offshore processing
FAQ

Buy now, pay later, explained.

Answers for shoppers and retailers. Still have a question? Ask us on WhatsApp.

Eligibility & approval

What are the eligibility requirements for using buy now, pay later?
Shoppers usually need to be at least 18 (19 in some states), have a US address and phone number, and a debit card, credit card or bank account to repay. Each provider sets its own approval rules.
Are there credit checks with buy now, pay later?
Most short-term pay-in-4 plans use a soft credit check, which doesn't affect the shopper's credit score. Longer-term financing with interest may use a hard check.
How does the approval process work?
At checkout, the shopper picks the BNPL option and enters a few details. The provider decides in seconds, then shows the payment schedule before they confirm.
Do BNPL providers differ on interest rates and repayment terms?
Yes. Pay-in-4 plans are usually interest-free over about six weeks. Monthly financing can run from a few months to several years, with 0% or interest-bearing APRs depending on the provider, the shopper and the merchant's offer.

Credit, payments & spending

Can buy now, pay later affect a person's credit score?
It can. Some providers report payments to credit bureaus, and newer credit scoring models can include BNPL data. On-time payments may help; missed payments can hurt.
What happens if a payment is missed or delayed?
Depending on the provider, the shopper may be charged a late fee, lose access to future BNPL purchases, and see the missed payment reported to a credit bureau. The merchant is already paid and isn't affected.
How does BNPL affect how consumers spend?
Splitting the cost makes larger purchases feel more manageable, so shoppers tend to buy more per order and abandon carts less often. It also makes it easier to overspend across several plans, which is why responsible use matters.

Benefits & risks

What are the benefits of buy now, pay later for consumers?
Spreading the cost over time, often with no interest, a quick decision at checkout, and a clear schedule of payments up front.
Are there hidden fees or downsides to watch for?
Pay-in-4 plans are often interest-free, but late fees can apply, and longer plans may charge interest. The main risks are juggling several plans at once and missed payments affecting credit.

For retailers

Why do retailers offer buy now, pay later?
It tends to raise average order value and conversion rates, and attracts shoppers who prefer not to use credit cards. The merchant is paid upfront, and the provider usually takes on the repayment risk.
How do companies like Afterpay make money?
Mainly from merchant fees, a percentage of each order plus a small fixed fee. Some providers also earn from late fees or interest on longer-term plans.
What does it cost the merchant?
Typically a few percent of the order, often in the 2–8% range plus a small fixed fee, depending on the provider and plan length. That's usually more than card processing, so it suits higher-value orders.
Are there limits on the products or retailers that can offer BNPL?
Yes. Providers set their own rules. Many won't work with certain high-risk industries, and most have minimum and maximum order amounts.
Can buy now, pay later be used in-store, or only online?
Both. Many providers work online and in-store, through a POS integration, a QR code or a virtual card in the provider's app.
What happens with returns or exchanges?
Process the refund through the provider. They adjust or cancel the shopper's remaining payments and refund what's already been paid. Refunding outside the provider's flow can leave the shopper still owing installments.

Choosing what's right

Should my business offer buy now, pay later?
It's worth it if you sell higher-ticket items, see customers drop off at checkout, or sell to shoppers who prefer not to use credit cards. If your margins are thin, compare the fees with your card costs first.
What alternatives to BNPL can consumers consider?
Saving up and paying in full, a credit card with a 0% intro APR, a debit card, a store layaway plan or a personal loan, depending on the size of the purchase.

Let customers buy now and pay later.

Tell us what you sell and your average order value. We'll tell you which BNPL options fit, and what they'd cost.

Get started Chat on WhatsApp

Direct-Merchant.org provides consulting and application support only. We are not a lender, BNPL provider, bank or payment processor, and we do not extend credit to consumers. Approval, fees, order limits and terms are set solely by each BNPL provider, and approval is never guaranteed. Consumer financing terms, credit checks and credit reporting vary by provider. Affirm, Klarna, Afterpay, PayPal, Sezzle and Zip are trademarks of their owners; we are not affiliated with them. This page is general information, not financial advice.